Question

In: Finance

A negative effective financing rate indicates that an MNC: paid only a small amount in interested...

A negative effective financing rate indicates that an MNC:

paid only a small amount in interested over and above the amount borrowed.

has been negatively affected by a large appreciation of the foreign currency.

actually paid fewer dollars to repay the loan than it borrowed.

would have been better off borrowing in the U.S.

Solutions

Expert Solution

Negative effective financing rate indicates that home currency has appreciated and those companies who have borrowed outside the domestic territory will be having higher amount to pay because their domestic currency has appreciated in respect to the foreign currency and they would have been better off borrowing in United State.

Correct answer will be option (d) would have been better off borrowing in United State.

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

supposed only a small amount of your peanut burned and a large amount of another student's...
supposed only a small amount of your peanut burned and a large amount of another student's peanut burned. why will you have similar results for the amount of heat evolved? should you both get similar results for your calculation of the calories content per gram for both peanuts. why or why not? Use your value of 2.5kcal/g to calculate the number of calories in one ounce of peanuts. show all wok in your calculation
1. Explain how the net cash flow from financing activities could be a negative amount. 2....
1. Explain how the net cash flow from financing activities could be a negative amount. 2. Explain what cash flow pattern would normally be expected in the first year of a new company.
In 2009, the effective income tax rate paid by the top 1% of households in the...
In 2009, the effective income tax rate paid by the top 1% of households in the U.S. was 20.4%, while the bottom two quintiles actually paid _______ effective income taxes. Select the correct answer below: 1.even higher 2.negative 3.the same 4 zero Which of the following are examples of command-and-control regulation? Select two correct answers. Select all that apply: laws that require the use of filters in automobile tailpipes and smokestacks laws that specify the amount of pollution each producer...
You own a small storefront retail business and are interested in determining the average amount of...
You own a small storefront retail business and are interested in determining the average amount of money a typical customer spends per visit to your store. You take a random sample over the course of a month for 15 customers and find that the average dollar amount spent per transaction per customer is $86.485 with a standard deviation of $15.8647. Create a 99% confidence interval for the true average spent for all customers per transaction. Question 2 options: 1) (...
You own a small storefront retail business and are interested in determining the average amount of...
You own a small storefront retail business and are interested in determining the average amount of money a typical customer spends per visit to your store. You take a random sample over the course of a month for 11 customers and find that the average dollar amount spent per transaction per customer is $114.645 with a standard deviation of $18.2388. Create a 90% confidence interval for the true average spent for all customers per transaction. Question 6 options: 1) (...
The interest rate paid on funds deposited in a bank is determined by the amount of...
The interest rate paid on funds deposited in a bank is determined by the amount of time the money is left on deposit. For a particular bank, the following schedule is used: Time on Deposit Interested Rate Greater than or equal to 15 years 16.5 percent Less than 15 years but greater than or equal to 10 years 11.5 percent Less than 10 years but greater than or equal to 6 years 7.0 percent Less than 6 years but greater...
An amount of $3,000 is deposited into Fund X, which earns an annual effective rate of...
An amount of $3,000 is deposited into Fund X, which earns an annual effective rate of 8%. At the end of each year, the interest earned plus an additional $150 is withdrawn from the fund. At the end of the twentieth year, the fund is depleted. The annual withdrawals of interest and principal are deposited into Fund Y, which earns an annual effective rate of 10%. Determine the accumulated value of Fund Y at the end of year 20. Justify...
. The contract indicated only silty and blue clays and a small amount of shale would...
. The contract indicated only silty and blue clays and a small amount of shale would be encountered on the site. A large quantity of shale was actually encountered instead of the silty and clay material. The contractor had intended to use the excavated material of silt and clay for fill at another location on the job, however, the excavated material would not compact well and the contractor had to purchase fill from another source at a cost of $40,000....
48. The economy is considered at full employment, with a small amount of a natural rate...
48. The economy is considered at full employment, with a small amount of a natural rate of unemployment, only when A. The structurally, seasonally, and cyclically are unemployed B. The frictionally and structurally are unemployed C. The frictionally, cyclically, and seasonally are unemployed D. The structurally, frictionally, and cyclically are unemployed. E. The frictionally, structurally, and cyclically are unemployed. 49. Which of the following causes an increase in the money supply? A. Reducing the required reserve ratio for member and...
Credit terms. Find the effective annual rate of the following credit? terms: a.??2.1% discount if paid...
Credit terms. Find the effective annual rate of the following credit? terms: a.??2.1% discount if paid within 7 days or net within 30 days b.??1.8% discount if paid within 28days or net within 60 days c.??0.6?% discount if paid within 11 days or net within 45 days d.??0.9% discount if paid within 17days or net within 30 days a.??What is the effective annual rate of a 2.1?% discount if paid within 7 days or net within 30 ?days?
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT